Italy’s economy stagnated in Q3 2026, with GDP unchanged from the previous quarter, falling short of market expectations for 0.1% growth, according to preliminary data. Year on year, GDP increased by 0.8%, also below the 0.9% forecast. Despite the weak quarterly performance, acquired growth stood at 0.8% at the end of September, meaning that Italy’s economy would expand by the same rate for the full year even if output remains flat in Q4. The figures highlight the challenge facing Prime Minister Giorgia Meloni’s government as it seeks to strengthen economic growth. Earlier this month, the government revised its GDP forecasts upwards, targeting expansion of 1% in 2026 and 0.8% in 2027, compared with previous estimates of 0.6% for both years. Italy’s economy grew by 0.6% in 2025, while the government expects growth to accelerate to 0.9% in 2028.